Top 10 Health Insurance Co's Profits 2007: $12.9Bn | Overhead Cost: $156Bn | Avg CEO Pay: $11.9Mn

[Stephanie]

2007 health insurance companies' administrative costs: $156B.

http://www.pnhp.org/publications/nejmadmin.pdf

Profits at 10 of the country’s largest publicly traded health insurance companies in 2007 rose 428 percent from 2000 to 2007, from $2.4 billion to $12.9 billion, according to U.S. Securities and Exchange Commission filings.

In 2007 alone the chief executive officers at these companies collected combined total compensation of $118.6 million—an average of $11.9 million each. That is 468 times more than the $25,434 an average American worker made that year.

http://www.commonwealthfund.org/Content/News/News-Releases/2009/Jul/Private-and-Public-Insurance-Choices.aspx

The United States leads all other industrialized countries in the share of national health care expenditures devoted to administration. The cost of administering the U.S. health care system totaled nearly $156 billion in 2007, and that figure is expected to double—reaching $315 billion—by 2018. In addition, costs incurred by physicians in their transactions with health plans are estimated to be as high as $31 billion a year.

http://www.healthreformwatch.com/2009/02/26/whos-looking-at-the-compensation-of-the-health-care-insurance-executives-and-wheres-hr-676/

Ins. Co. & CEO With 2007 Total CEO Compensation

• Aetna Ronald A. Williams: $23,045,834
  
• Cigna H. Edward Hanway: $25,839,777
  
• Coventry Dale B. Wolf : $14,869,823
  
• Health Net Jay M. Gellert: $3,686,230
  
• Humana Michael McCallister: $10,312,557
  
• U.Health Grp Stephen J. Hemsley: $13,164,529
  
• WellPoint Angela Braly (2007): $9,094,271
 L. Glasscock (2006): $23,886,169

http://wonkroom.thinkprogress.org/2009/08/05/are-health-insurers-making-too-much-money/

 The top five earning insurance companies averaged profits of $1.56 billion in 2008 and reported spending 
an average of “more than 18 percent of their revenues on marketing, administration, and profits.” That year, 
CEO compensation for these companies ranged from $3 million to $24 million.” Below is a partial list of insurer/CEO profits:

Insurer:	               Company Profits:	          CEO Total Compensation:	          CEO 5 Year Compensation:
UnitedHealth Group	     $2,977,000,000	          $5,030,000	                                        –
WellPoint	          $2,490,700,000	          $4,070,000	–
Atena	                    $1,384,100,000	          $38,860,000	                                        $77,860,000
Humana	                    $647,000,000	          $2,390,000	                                        $56,910,000
Cigna	                    $292,000,000	          $30,016,000	                                        $120,510,000

Cost of the public option?

[BeyondGeography]

1. Ronald A. Williams to Aetna: I'm glad I met ya.

[YOY]

2. Well now...with all those profits they can diversify and survive single payer.

If they are smart.

[G_j]

3. K&R

[tosh]

4. Wow!

Stephanie, your OP just helped me to discover the "printer friendly format" button on DU.

I was aware of this data but THANKS for the nice, concise format!:hi:

[TheWebHead]

5. here are some 2008 numbers for 3 large insurers

posted it on another thread but this is relevant

Unitedhealth Group, Inc. (UNH)
2008 Total Revenue $81,186,000,000
Operating Income $5,263,000,000
Pre-tax margin: 6.5%

WellPoint Inc. (WLP)
2008 Total Revenue $61,251,100
Operating Income $3,592,200
Pre-tax margin: 5.9%

CIGNA Corp. (CI)
2008 Total Revenue $19,101,000,000
Operating Income $378,000,000
Pre-tax margin: 2%

historical S&P 500 average approx 9%

[Stephanie]

6. Thank you

I'd be delighted if you could translate those profit percentages into dollar amounts.

[TheWebHead]

7. that's the operating income figure

[Stephanie]

9. If you could explain more I wd appreciate it

[BolivarianHero]

8. In comparison...

Canada's Health Minister takes home a "paltry" $223,000 a year.

http://www2.canada.com/ottawacitizen/news/story.html?id=ea318a9c-4e24-4556-847e-2c162a7f1d36

MPs have quietly pocketed a $3,100 pay hike, which takes their annual base salary to $150,800.

And for bonuses on top of the base MP salary?

Minister: $72,200

[ms liberty]

10. K&R, and marking for later...n/t